Commissioner for Consumer Protection v Susilo

In the matter of the Commissioner for Consumer Protection versus Susilo, the Federal Circuit Court of Australia was tasked with determining the appropriate penalty for misleading conduct in the promotion of rent-to-buy transactions. Susilo, the respondent, was found to have engaged in misleading conduct by advertising and promoting rent-to-buy agreements that were not in accordance with the Australian Consumer Law (ACL). The Commissioner for Consumer Protection sought an appropriate pecuniary penalty for the contraventions identified.

The central legal issue before the court was to determine the appropriate penalty for the admitted misleading conduct. The court had to consider the nature and seriousness of the contraventions, the degree of culpability of the respondent, and any relevant mitigating factors. Additionally, the court had to assess whether the penalties imposed by the Australian Competition and Consumer Commission (ACCC) were appropriate and whether they served as an effective deterrent.

The court, in considering the evidence presented, found that Susilo's conduct was indeed misleading and contravened the ACL. The court recognised that the contraventions were serious, as they involved a significant number of consumers who were potentially misled by the misleading advertisements. The court also considered the degree of culpability and found that Susilo had acted deliberately in promoting the rent-to-buy agreements in a misleading manner. However, the court acknowledged that Susilo had cooperated with the ACCC and had taken steps to rectify the misleading conduct. Taking into account all relevant factors, the court found that the penalties imposed by the ACCC were appropriate and served as an effective deterrent against future contraventions.

The court ordered that Susilo pay a pecuniary penalty of $120,000, which reflected the seriousness of the contraventions and the need to deter future misleading conduct. The court further directed Susilo to provide a written apology to affected consumers and to take steps to ensure compliance with the ACL in future promotions.